Candle Stop Forex Scalping Trading Strategy

The Candle Stop forex trading strategy is designed to scalp the market and should be applied to currency pairs with low spreads to maximize the profit potential.

Apply this strategy on M1, M5 and M15 charts. Avoid exotic pairs.

Chart Setup

MetaTrader4 Indicators: Bulls.ex4 (color modified = OrangeRed; width modified = 2), CandleStop.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: New York | London | Tokyo

Currency Pairs: Low spread pairs (max. 4 pips spread), avoid exotic forex pairs

Download

Download the Candle Stop Forex Scalping Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following rules or conditions are in place:

  1. If price closes above the dotted magenta line of the CandleStop.ex4 custom indicator, initiate a buy entry on the open of the subsequent candlestick as shown on Fig. 1.0. You’ll find price trading somewhat above the magenta dotted line during an uptrend.
  2. If the orange red histograms of the Bulls indicator aligns above the 0.00 signal line, it is a signal that price is being pushed higher i.e. a trigger to go bullish on the currency pair of interest.

Stop Loss for Buy Entry: Place stop loss below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following chart or indicator patterns get displayed:

  1. If price closes below the dotted magenta line of the CandleStop.ex4 custom indicator, it is a signal of weaning bull’s pressures, and as such an exit or take profit is advised
  2. If the orange red histograms of the Bulls indicator forms below the 0.00 signal level, it is a sign that buyers are exiting or closing their buy positions, as such an exit or take profit is recommended.

Sell Entry Rules

Enter a sell in the market if the following rules or conditions hold sway:

  1. If price closes below the dotted lime colored line of the CandleStop.ex4 custom indicator, initiate a sell entry on the open of the subsequent candlestick as depicted on Fig. 1.1. You’ll find price trading somewhat below the lime dotted line during an uptrend.
  2. If the orange red histograms of the Bulls indicator aligns below the 0.00 signal line, it is price being pushed lower i.e. a trigger to go bearish on the forex pair of interest.

Stop Loss for Sell Entry: Place stop loss above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following chart or indicator pattern gets displayed:

  1. If price closes above the dotted lime line of the CandleStop.ex4 custom indicator as seen on Fig. 1.1, it is a signal of weaning bear’s pressures, and as such an exit or take profit is advised
  2. If the orange red histograms of the Bulls indicator forms above the 0.00 signal level, it is a sign that sellers are exiting or closing their buy positions, as such an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Candle Stop Forex Scalping Trading Strategy

About The Trading Indicators

The Bulls indicator is an oscillator developed by Alexander Elder to reveal the underlying strength of the current trend.

The CandleStop.ex4 is a chart pattern indicator that is comprised of two dotted lines channel (magenta and lime colored dotted lines).

Price is said to be bullish when it is above the magenta dotted line and bearish when it is below the dotted lime colored line.

Share Now!